Planning Matters.

Changing Jobs? What You Need to Know (Part 1 of 2)

Whether you’re making a planned transition or have found yourself unexpectedly let go, it can be both exciting and daunting to change from one job to another. There are a lot of financial aspects to think about, so we’ve pulled together a couple of checklists to help you manage the transition.

In Part 1 of this two-part series, we cover some of the things you should tackle as you get ready to leave your former employer.

Part 1: Wrapping Things Up & Moving Forward

Where do I begin?

  • List all monthly income and expenses to see where you stand. Do you have sufficient emergency funds in place to cover any shortfall?
  • Proactively manage your insurance benefits to avoid a lapse in coverage. Ask when your health, disability, and life insurance will expire. Decide whether to continue your previous coverage or shop the market for other coverage.
  • Check status of any pending claims under your old provider. Submit all eligible expenses for reimbursement under your old programs before you leave, and find out if you have any grace period for submission.
  • Calculate unused vacation, sick pay, and other compensation that may be due.
  • Find out how much time you have to exercise any vested stock options.
  • Evaluate the options for your old 401(k) plan, carefully considering all available options. In some cases, your plan may require a decision within 60 days of separation.
  • Save all documents relating to your separation from your former employer.
  • If you moved for your new job, tie up loose ends. Notify your former employer of your new address, and keep track of moving expenses, as they may be tax-deductible.
  • A job change may affect the amount of taxes you’ll owe for the year, depending on the circumstances. Talk with your financial planner or tax professional to see if tax withholding needs to be increased or decreased.

One of the ways we partner with clients is to help them plan ahead for future possibilities such as job change. Next week, in Part 2, we’ll go over the pieces to consider as you start your new job.

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